The Indian government and the Asian Development Bank (ADB) have signed a $350 million policy-based loan agreement to support the Strengthening Multimodal and Integrated Logistics Ecosystem (SMILE) programme.
This loan, under the programme’s second subprogramme, is aimed at improving the logistics framework to enhance manufacturing capabilities and build resilient supply chains in the country.
The Ministry of Commerce and Industry noted that the SMILE programme supports wide-ranging reforms in India’s logistics sector through a programmatic policy-based loan structure. It comprises two subprogrammes designed to promote the manufacturing sector and bolster supply chain systems.
The loan agreement was formalised with the involvement of the Department of Economic Affairs under the Ministry of Finance, the Department for Promotion of Industry and Internal Trade, and the ADB. The SMILE programme establishes a policy framework to improve logistics efficiency. It focuses on developing multimodal logistics infrastructure across national, state, and city levels, while standardising warehousing and logistics assets.
The initiative also seeks to engage the private sector in enhancing external trade logistics, improving operational efficiencies, and adopting low-emission smart systems.
The ministry emphasised that reforms in the logistics sector are aligned with efforts to enhance the manufacturing sector’s global competitiveness. Steps such as policy advancements, infrastructure upgrades, and technological integration aim to lower costs, improve trade efficiencies, and create job opportunities while advancing inclusive growth.
In a separate development, the Indian government and ADB have agreed on a $42 million loan to support coastal and riverbank protection initiatives in Maharashtra. This funding will help stabilise the state’s coastline, protect the livelihoods of local communities, and safeguard natural ecosystems.
